Market Outlook and Forecasts for Legal Tech Worldwide 2024-2029

Contract cooperation software, booming AI and ML sectors, workflow automation, and cloud adoption are driving growth.

The Legal Tech market was valued at USD 26.70 billion in 2023 and is expected to grow to USD 55.00 billion by 2029, representing a compound annual growth rate (CAGR) of 12.80 %.

The global legal tech market is moderately fragmented and comprises a variety of vendors addressing the evolving needs of legal professionals. This competitive landscape is characterized by a mix of established companies and emerging startups offering innovative solutions to improve efficiency, foster collaboration, and streamline legal processes. Icertis, Inc. is a leading provider of contract lifecycle management software that helps organizations manage contracts more effectively. Filevine Inc. offers a case management platform designed to streamline workflows and increase productivity in law firms.

North America is a dominant region in the global legal tech market, driven by several key factors. First, the established legal industry, with its numerous law firms, corporate legal departments, and government agencies, fosters high demand for innovative legal tech technologies. The region is home to many leading legal tech companies, such as Thomson Reuters and LexisNexis, which continuously develop and offer advanced solutions specifically tailored to the needs of legal professionals. Furthermore, market growth is fueled by the increasing adoption of digital transformation initiatives across various sectors, including legal services.

Furthermore, the region benefits from a strong venture capital ecosystem that supports innovation in legal tech. Investments in startups and emerging companies lead to the development of advanced solutions that address the specific challenges faced by legal professionals. A growing focus on compliance, data security, and risk management is also driving the adoption of legal tech solutions in North America, further solidifying the region's position as a leading market for legal technology.

Europe is a diverse region with varying degrees of legal tech adoption across different countries. The UK and Germany are the leading countries in the European legal tech market, followed by countries such as France, the Netherlands, and the Nordic countries. The market is growing but not yet as mature as in North America, and many legal tech solutions are still in the early stages of adoption. Furthermore, the Asia-Pacific (APAC) region is an emerging legal tech market with significant growth potential. While the legal tech market in the APAC region is still in its early stages, several countries, including Australia, Singapore, India, and Japan, are experiencing rapid adoption of legal tech solutions.

Increased use of AI and cloud technology in the legal industry

The adoption of cloud technology in the legal industry has become a significant trend and is a major contributor to the growth of the global legal tech market. Although the legal sector was initially slower to implement cloud-based solutions, the COVID-19 pandemic and the subsequent shift to hybrid and remote work models have led law firms and legal departments to prioritize cloud access to ensure operational continuity.

By 2024, the integration of cloud-based legal technologies will have increased significantly. According to a recent study, over 70 million law firms have now integrated cloud solutions into their workflows, reflecting the growing importance of flexibility, scalability, and remote accessibility in the legal industry. This represents a substantial increase compared to the adoption rate of 58 million reported by the American Bar Association (ABA) in 2019. The shift to cloud services is seen as crucial for the continued development of the legal tech sector, as it enables law firms to manage cases, documents, and client communications more effectively.

Cloud services specifically tailored to the legal sector, such as Clio, Rocket Matter, Practice Panther, NetDocuments, and MyCase, continue to play a key role in this transformation. These platforms offer customized solutions that meet the unique needs of legal professionals, thereby contributing to the overall growth of the market. With the increasing adoption of cloud technology, the legal industry is expected to make further strides in operational efficiency, cost management, and customer service.

Automation of legal workflows to increase efficiency

Automating legal workflows is transforming how law firms and corporate legal departments operate, enabling them to streamline repetitive and administrative tasks such as document creation, billing, case management, and contract generation. Automated solutions free legal professionals from time-consuming manual work, allowing them to focus on more value-added activities, thereby increasing both productivity and profitability. Furthermore, automation helps ensure regulatory compliance, reduce human error, and accelerate legal processes, creating a more agile and responsive legal environment.

Legal technology solutions have become an essential part of contract management. They enable legal professionals to automate routine tasks, improve collaboration, and minimize risks associated with manual processes. These tools reduce the time spent on repetitive tasks such as contract drafting, document management, and scheduling, allowing lawyers to focus on more valuable activities. According to Lawtech 365, legal technology has enabled law firms to save approximately 40 million euros of their time by 2024 through the automation of administrative processes.

Furthermore, companies worldwide are leveraging legal technology to streamline workflows, manage information more effectively, and foster collaboration within their teams. These technologies not only improve efficiency but also contribute to significant cost savings, enabling legal departments to handle more cases with fewer resources while delivering better outcomes for their clients. This increasing reliance on legal technology is transforming the legal industry's approach to managing workloads, meeting client needs, and optimizing overall performance.

Important attributes:

Overview of the Legal Tech Market

The evolution of Legal Tech: From pre-pandemic growth to post-pandemic innovations

• Remote work is revolutionizing the legal tech market.
• High-profile investments
• Increasing use of contract collaboration software
• Emerging Trends in Legal Tech
• Legal Tech for specific industries
  • healthcare
  • Finance and banking
  • property
  • production
  • Energy and utility companies
  • Technology and software development

Key competition highlights

• Value chain analysis
  • Research and Development (R&D)
  • Product development
  • Marketing and Sales
  • Distribution and implementation
  • Customer service and support
  • After implementation: Evaluation

Market Opportunities & Trends

• Growth in the use of AI and cloud technology in the legal industry
• Booming sectors for AI and machine learning in the field of Legal Tech
• Automation of legal workflows to increase efficiency
• Growing sectors for workflow automation in Legal Tech
• Cloud-based solutions enable remote and collaborative work.
  • Cloud solutions are growing in the field of legal tech.
  • Booming sectors in cloud-based legal tech
  • Examples of companies that are driving cloud adoption

Market growth drivers

• Expansion of Legal Tech in emerging markets
• Blockchain integration for secure transactions
• The rise of subscription models and SaaS

Market barriers

• Regulatory and compliance challenges
• Concerns about data protection and data security pose a major challenge to the growth of Legal Tech
• High initial investments for implementation

Key company profiles

• Thomson Reuters
• LexisNexis
• DocuSign, Inc.
• Casetext Inc.
• ProfitSolv, LLC
• Other prominent providers
  • Clio
  • Everlaw
  • Onit
  • Kira Systems
  • ContractPodAi
  • Smokeball
  • LawGeex
  • DISCO
  • Luminance
  • Nuix
  • LegalZoom
  • Neota Logic
  • HotDocs
  • eBrevia
  • Lex Machina
  • LawPay
  • PracticePanther
  • Jury
  • Contractbook
  • SimpleLegal

Segmentation by solution type

• software
• Services

Segmentation by deployment type

• Cloud-based
• On-Premises
• Other

Segmentation by end user

• Law firms
• Corporate legal departments
• Other

Segmentation by application

• Other
• Legal research
• Contract management
• E-Discovery
• Practice and case management
• Intellectual property